Paramount Considers Elon Musk as Equity Investor in $110 Billion Warner Bros. Merger

Paramount is weighing whether to bring Elon Musk on as an equity investor in its roughly $110 billion takeover of Warner Bros. Discovery, people familiar with the matter told Semafor. The size of any potential investment has not been determined, and a Paramount spokesperson declined to comment. Musk did not respond to a request for comment.

David Ellison, who will lead the combined company, has been sizing up wealthy individuals to join his syndicate of investors as he works to finalize financing before the deal closes. Ellison’s father, Oracle co-founder Larry Ellison, has personally guaranteed more than $40 billion of the equity financing supporting the acquisition. An investment from Musk, a longtime friend of Larry Ellison, could help reduce that burden and diversify Paramount’s investor base, according to sources cited by Semafor.

Larry Ellison invested in Tesla in 2018 and served on its board for several years. He also committed $1 billion to Musk’s $44 billion takeover of Twitter, now X, in 2022. Musk is the world’s richest person, with a net worth of about $950 billion, according to Forbes.

**CNN Staff Fear Layoffs, Political Fallout**

News of Musk’s possible involvement has sparked alarm inside CNN, which Warner Bros. Discovery owns. Staffers at the network already face the prospect of layoffs and uncertainty over who will lead the newsroom after the merger. “Amazing it comes out now of course,” one CNN source told the New York Post, pointing to the awkward timing for California Governor Gavin Newsom, who supported the deal to keep Paramount jobs in the state. “Not good for Gavin!”

Another CNN source said: “When it rains… it pours. It’s really scary given what he did at X and DOGE.” Musk oversaw steep job cuts at X and led a government efficiency initiative under the Trump administration.

At CBS News, David Ellison installed Bari Weiss as editor-in-chief after his firm Skydance acquired Paramount. Weiss has faced criticism for firing longtime “60 Minutes” correspondents and for her management of newsroom coverage, CNN staffers have taken note, according to Semafor.

Once the merger is complete, David Ellison will control HBO Max, Paramount+, HBO, CBS, CNN, and thousands of film titles, making him one of the most powerful figures in American entertainment.

**Merger Clears Legal Hurdle, Sets Production Terms**

The potential Musk involvement comes days after Paramount settled an antitrust lawsuit brought by California Attorney General Rob Bonta, clearing the final major legal barrier to the deal. Under the settlement, Paramount agreed to spend an additional $1.5 billion on domestic production over five years. The company must release 30 films in theaters each year, rising to 32 after the first two years, with at least 20 wide releases and four independent films annually. If it misses those targets, it must sell Miramax Studios and pay $30 million for each film it falls short.

Paramount also committed to negotiate cable deals separately and to raise domestic production from 5% of all films to 20% or even 30% if Congress passes certain tax credits. The settlement created a News Editorial Independence Board for CBS News and CNN, though its powers have not been spelled out. The agreement did not address layoffs.

The deal had previously been challenged by a group of state attorneys general, and a trial was scheduled for March 2027. Paramount agreed to start paying a $7 million daily “ticking fee” from October 1 if the merger had not closed, according to reports.

**Financing Structure, Foreign Investors**

The $110 billion merger is backed by $47 billion in equity financing and $54 billion in debt financing, according to TheWrap. The equity includes contributions from three Middle Eastern sovereign wealth funds and LionTree Investment Fund, which will have no board seats or governance rights. Foreign investors will own 49.5% of the non-voting equity, with 38.5% controlled by the sovereign wealth funds. The Federal Communications Commission has given advance approval for those investors to hold up to 20% each of Paramount’s indirect equity in the future.

Saudi Arabia’s Public Investment Fund will hold a 15.1% stake, the United Arab Emirates’ L’imad Holding Company 12.8%, and the Qatar Investment Authority 10.6%, according to TheWrap. Bank of America, Citigroup, and Apollo have committed to the debt financing.

A check from Musk would not only reduce Larry Ellison’s financial burden but also serve as a strong vote of confidence in the combined company from a businessman with a devoted retail investor following, Semafor reported. The Ellison family and RedBird Capital Partners have backstopped the equity.

Musk’s potential involvement carries political implications given his influence and his role in media, with Democrats already concerned about his control of X, Semafor noted. Even a partial stake in CNN and CBS could raise alarm in Washington, though Musk is unlikely to have formal input over operations.